Economist warns: Leave HSF alone
As Parliament sat the week, prepared to pass amendments to the Heritage and Stabilisation Fund Act, economist Marla Dukharan sent a chilling warning calling for the move to be avoided at all costs.
Amendments to the HSF Act were brought by Finance Minister Colm Imbert to the House of Representatives on Wednesday where it was eventually passed following a committee stage meeting.
Imbert said the HSF Act was being amended to allow access to its funds during this time when the country is facing a dramatic fall in oil prices as well as the arrival of COVID-19 to our shores.
The reconfiguration allows for any government in the future to access funds when a disaster is declared He said the country was in such a situation and estimated that around $9 billion would be needed to address it.
Imbert said the HSF was just one of four options the government would pursue to raise those funds.
However, Dukharan argued the HSF should not be included in that equation at all.
“The Heritage and Stabilisation fund should not be the first line of attack or defence as the case may be. The Heritage and Stabilisation Fund is there and should be accessed within the fiscal rules. We should not be breaking these fiscal rules,” she said.
She said it is not good when we already have weak institutions and weak governance and use a crisis to make change to the laws..
Dukharan said even though the economy may be in a crisis now, the rules were there for a reason and therefore they should be adhered to especially in the face of weak governance. —JOEL JULIEN
Amendments to the HSF Act were brought by Finance Minister Colm Imbert to the House of Representatives on Wednesday where it was eventually passed following a committee stage meeting.
Imbert said the HSF Act was being amended to allow access to its funds during this time when the country is facing a dramatic fall in oil prices as well as the arrival of COVID-19 to our shores.
The reconfiguration allows for any government in the future to access funds when a disaster is declared He said the country was in such a situation and estimated that around $9 billion would be needed to address it.
Imbert said the HSF was just one of four options the government would pursue to raise those funds.
However, Dukharan argued the HSF should not be included in that equation at all.
“The Heritage and Stabilisation fund should not be the first line of attack or defence as the case may be. The Heritage and Stabilisation Fund is there and should be accessed within the fiscal rules. We should not be breaking these fiscal rules,” she said.
She said it is not good when we already have weak institutions and weak governance and use a crisis to make change to the laws..
Dukharan said even though the economy may be in a crisis now, the rules were there for a reason and therefore they should be adhered to especially in the face of weak governance. —JOEL JULIEN